MIRA
INFORM REPORT
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Report Date : |
22.03.2014 |
IDENTIFICATION DETAILS
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Name : |
Hongye Holding
Group Corporation Limited |
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Registered Office : |
50m West Of Gaoxin Road And Huafeng Road Intersection, Puyang, Henan Province, 457000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.12.2011 |
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Reg. No.: |
410993000021345 |
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Legal Form : |
LIMITED LIABILITIES CO. |
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Line of Business : |
Subject is engaged in selling chemical products mainly include:
thiourea dioxide, sodium percarbonate, sugar alcohols, FAS pulp bleaching
agents |
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No. of Employees : |
120 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed,
centrally planned system to a more market-oriented one that plays a major global
role - in 2010 China became the world's largest exporter. Reforms began with
the phasing out of collectivized agriculture, and expanded to include the
gradual liberalization of prices, fiscal decentralization, increased autonomy
for state enterprises, creation of a diversified banking system, development of
stock markets, rapid growth of the private sector, and opening to foreign trade
and investment. China has implemented reforms in a gradualist fashion. In
recent years, China has renewed its support for state-owned enterprises in
sectors it considers important to "economic security," explicitly
looking to foster globally competitive national champions. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China revalued
its currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2013 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's agricultural
and industrial output each exceed those of the US; China is second to the US in
the value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (c) reducing corruption and other economic crimes; and (d)
containing environmental damage and social strife related to the economy's
rapid transformation. Economic development has progressed further in coastal
provinces than in the interior, and by 2011 more than 250 million migrant
workers and their dependents had relocated to urban areas to find work. One
consequence of population control policy is that China is now one of the most
rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. The
government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued
economic reforms and the need to increase domestic consumption in order to make
the economy less dependent on fixed investments and exports in the future.
However, China has made only marginal progress toward these rebalancing goals.
The new government of President XI Jinping has signaled a greater willingness
to undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
Hongye Holding Group Corporation Limited
50M West of Gaoxin ROAD and Huafeng road
intersection, Puyang, HENAN PROVINCE,
457000 PR CHINA
TEL: 86 (0) 393-8689388/8708335 FAX:
86 (0) 393-8787877
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 29, 2011
REGISTRATION NO. : 410993000021345
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. CHEN ZHIYONG (CHAIRMAN)
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 287,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 72,920,000 (UNAUDITED, AS OF DEC. 31, 2013)
EQUITIES :
CNY 257,370,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1505 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Renminbi
SC was registered as a Limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Dec. 29, 2011.
Company Status: Limited liabilities co. This form of business in PR China
is defined as a legal person. No more than fifty shareholders contribute
its registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes selling mechanical and
electrical machinery and equipment (excluding cars), instrumentation, hardware
and building materials, textiles, haberdashery, handicrafts, agricultural
products, chemical products (excluding dangerous goods); researching and
developing biotechnology and new materials; real estate development and
management; importing and exporting goods and technologies (excluding the items
prohibited by the state). (with permit if needed).
SC is mainly engaged in selling chemical products.
Mr. Chen Zhiyong is the legal
representative and chairman of SC at present.
SC is known to have approx. 120 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Puyang. Our checks reveal that SC owns the total
premise, but the gross area of the premise is unspecific.
http://www.hongyechem.com
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
Email: hnhy@hongyechem.com
; hongyechem@hongyechem.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Company’s name |
Puyang Henvan Trading Co., Ltd. |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 58858179X
SC was taken into operation in August of 2013.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Zhiyong 63.2
Zhou Zhijun 20
Yan Dianxian 12.8
Wu Tongda 4
Legal
Representative and Chairman:
Mr. Chen Zhiyong is currently responsible
for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman.
General Manager:
Ms. Wu Jinghong is currently
responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager.
Directors:
Yan Dianxian
Wu Tongda
Supervisor:
Song Jiande
SC is mainly engaged in selling chemical products.
SC’s products mainly include: thiourea dioxide, sodium percarbonate,
sugar alcohols, FAS pulp bleaching agents, etc.
SC was taken into operation in August of 2013.
SC sources its materials 100% from domestic market. SC sells 95% of its
products to overseas market, and 5% in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
Note: SC’s
management declined to release its major suppliers and clients.
According to SC’s website:
Hongye Chemical Co., Ltd.
=====================
Incorporation date:
Registration no.: 410900101021309
Registered capital: CNY 125,000,000
Legal rep.: Zhou Xingkui
Legal form: Shares limited co.
Puyang Hongye World Dragon Chemical Co., Ltd.
===============================
Incorporation date:
Registration no.: 410900400000022
Registered capital: CNY 80,000,000
Legal rep.: Yan Yong
Hongye Chemical Co., Ltd. Puyang Branch
=============================
Incorporation date:
Registration no.: 410993300002172
Principal: Chang Xianggui
Etc.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average ( ) Fair
( ) Poor ( )
Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None
in our database.
Debt collection record: No overdue amount owed by SC was placed to us for
collection within the last 6 years.
Bank of Puyang
AC#：N/A
Relationship: Normal
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2013 |
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Cash & bank |
240 |
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Inventory |
2,780 |
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Accounts receivable |
5,570 |
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Advances to suppliers |
82,910 |
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Other receivables |
3,690 |
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Other current assets |
2,700 |
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|
------------------ |
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Current assets |
97,890 |
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Long-term investments |
185,500 |
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Fixed assets net value |
0 |
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Projects under construction |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
283,390 |
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|
============= |
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Short loans |
0 |
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Accounts payable |
16,400 |
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Advances from customers |
20 |
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Accrued payroll |
0 |
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Taxes payable |
-530 |
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Other accounts payable |
10,130 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
26,020 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
26,020 |
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Shareholders equities |
257,370 |
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------------------ |
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Total liabilities & equities |
283,390 |
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============= |
Income Statement
Unit: CNY’000
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|
as of Dec. 31, 2013 |
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Turnover |
72,920 |
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Cost of goods sold |
71,330 |
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Taxes and additional of main operation |
0 |
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Sales expense |
960 |
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Management expense |
180 |
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Finance expense |
140 |
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Asset impairment loss |
420 |
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Non-operating income |
0 |
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Non-operating expense |
0 |
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Profit before tax |
-110 |
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Less: profit tax |
0 |
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Net profit |
-110 |
Note: The Financial Report for Year 2013 hasn’t been audited.
Important Ratios
=============
|
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as of Dec. 31,
2013 |
|
*Current ratio |
3.76 |
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*Quick ratio |
3.66 |
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*Liabilities to assets |
0.09 |
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*Net profit margin (%) |
-0.15 |
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*Return on total assets (%) |
-0.04 |
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*Inventory /Turnover ×365 |
14 days |
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*Accounts receivable/Turnover ×365 |
28 days |
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*Turnover/Total assets |
0.26 |
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* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loan in 2013.
SC’s turnover is poor, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.05 |
|
|
1 |
Rs.100.81 |
|
Euro |
1 |
Rs.84.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.